SL_MoneyFeature_0119FINAL_Layout 1 1 / 15 / 19 12 : 48 PM Page 3 B A B Y S T E P S T O RISK AND REWARD markets showed a strong comeback just two days FINANCIAL LITERACY later , making the investor’s reaction a “ regrettable mistake , ” as Strid puts it . ith the pension now a relic of a for - “ Some people feel they need to constantly re - gotten age and Social Security W act to stock - market volatility , but in 25 years of ex - to be on borrowed time , Americans rumored perience , that strategy doesn’t work ; in fact , it of - are largely on their own when it comes to ten backfires , ” he says . “ A wealthier 50 - year - old funding their retirement . investor is likely to live to be 90 or 95 years old . So why should they care what happens in their For many , this is an onerous task , driven portfolio in 2019 , when they’re going to be in part by a trend that suggests an over - drawing from that money 30 to 40 years from whelming number of Americans — including now ? Why don’t we look ahead , and use that as college graduates — are financially illiterate . In our measuring stick ? ” other words , they lack the education and In other words , an underperforming invest - understanding needed to adequately manage ment portfolio may result from an investor “ jump - their personal finances and investments . ing in and out of the markets at the wrong times Cases in point : 25 percent of U.S . adults do and for the wrong reasons , ” Strid says . not pay their bills on time , and 8 percent have Chubb suggests working with a professional debts in collections , according to a 2018 Con - to cultivate a well - The Squirrel Manifesto , thought - out financial sumer Financial Literacy Survey , conducted on plan — and then stay - behalf of the National Foundation for Credit by Ric and Jean Edelman , $ 19035 ing true to the plan’s Counseling . uses artfully drawn squirrels From the Main Line to idyllic architecture . Schools , nonprofit organizations , and Bucks County , and from “ If you’re trying to to teach lessons in treating employers have stepped in to offer lessons in Chester County farm country beat the market , you financial literacy . In addition , some teens and money “ the right away , ” to the tree - lined streets of e right twice — have to b pre - teens gain an education in personal Princeton , N.J . , the Greater when to get out , and as the publisher puts it : finance from other sources , such as their par - Philadelphia Area has some when to get back in — Use some now , save some of the most affluent ents ’ financial advisors . and even the pros don’t neighborhoods in the country . “ We send birthday gifts to our kids ’ always get that right , ” for later , share when The Montgomery County he says . “ Most of our clients , including books that reinforce the possible , etc . community of Gladwyne is clients pay attention to importance of preparing for the future , ” says the sixth wealthiest in what’s going on every Erik Strid , CEO of Concentus Wealth Advisors America by ZIP code ( 19035 ) , day , but in the end it’s in King of Prussia . “ One of the books is The based on a 2018 Bloomberg about asking the ques - and attractions designed to help children have Richest Man in Babylon [ by George S . analysis of IRS data . The tion : ‘ Did the likelihood fun while learning the value of a dollar . At the Clason ] . It’s about a man in ancient Babylon , average adjusted gross of me being able to re - same time , the exhibit aims to provide par - told in parable form , and it really reinforces income of households tire go up or down , ents with resources to teach kids how to the habits of frugality , the importance of in Gladwyne : $ 957,200 . and how likely ? ’ Short - practice good financial habits going forward . Miami Beach , Fla . , won paying yourself first , the power of com - term volatility makes “ Financial literacy in this country is in a the top spot , with an pounding interest — simple lessons that can people emotional , but terrible state , ” Strid says . “ At least by the time adjusted gross income of when people think they go a long way . ” someone has gotten their first job , earning more than $ 2.5 million can somehow time the To his point , online and brick - and - mortar per household . income , they should understand the power of market , that’s very dif - bookstores stock any number of tomes that saving and setting aside . I would suggest get - ficult to do . ” can help the next generation find a path to Investors tend to have long memories . Many ting some advice [ to prepare for the future ] as financial literacy . Among them is The Squirrel who might have had bad experiences resulting soon as you get your first job , if you haven’t Manifesto , by Ric and Jean Edelman , which from downturns or economic events — the most already . ” uses artfully drawn squirrels to teach lessons recent being the 2008 meltdown that ushered in — Bill Donahue in treating money “ the right away , ” as the the so - called Great Recession — remain spooked . publisher puts it : Use some now , save some Because they got burned then , many have stayed for later , share when possible , etc . Ric away from the market entirely . Strid’s forward - looking advice : Be optimistic . Edelman , incidentally , is a financial advisor - “ The American economy is an amazing en and the co - founder of Edelman Financial gine , ” he says . “ People say things like , ‘ This time Engines , which has offices in the Greater it’s different , ’ but if you look at the history of this Philadelphia Area . country , what would cause anyone to believe Books aren’t the only resource , of course . now is the time that a meltdown is going to start ? The Please Touch Museum in Fairmount Park … Household net worth is the highest it’s ever opens a new exhibit this month called “ Cents been . We’re approaching full employment . & Sensibility , ” to root children in concepts c performance is off the charts . Might Economi such as earning , saving , and spending . The we slow down ? Yeah . But to think we’ll expe - exhibit features a host of activities rience another 2008 crisis , to me ? it’s absurd . ” SUBURBANLIFEMAGAZINE.COM JANUARY 2019 44 |